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MD HB1405

MD HB1405
Commercial Law - Vehicles Towed or Removed From Parking Lots - Statutory Liens and Administrative Hearings


summary

Introduced
02/07/2025
In Committee
02/07/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Establishing that a certain person has a lien on a motor vehicle towed or removed from a privately owned parking lot for certain charges under certain circumstances; establishing the circumstances in which the lien is extinguished or suspended; establishing that an authorized tow company has a lien or security interest in a vehicle when the authorized tow company incurs certain charges related to a certain police-initiated towing; etc.

AI Summary

This bill establishes new legal protections and procedures for vehicle owners when their vehicles are towed from private parking lots or through police-initiated towing. The bill creates statutory liens for towing companies that remove vehicles from private parking lots or through police actions, allowing them to charge for services like towing, recovery, storage, and notice provision. These liens can be extinguished if the vehicle owner (or an authorized agent like an insurer) pays the associated charges. Critically, the bill mandates that counties and municipal governments establish an administrative hearing process that allows vehicle owners to challenge the legitimacy of a tow within 96 hours. If a hearing is not held within that timeframe, the towing company must release the vehicle without charge. The bill also requires parking lot owners to post more comprehensive signage, including information about administrative hearing rights and contact information for challenging a tow. Additionally, the bill specifies that if a government entity mistakenly or wrongfully authorizes a tow, they must reimburse the vehicle owner for reasonable towing and storage costs. These provisions aim to provide more transparency and consumer protection in vehicle towing processes. The bill is set to take effect on October 1, 2025.

Committee Categories

Transportation and Infrastructure

Sponsors (1)

Last Action

House Environment and Transportation Hearing (13:00:00 2/27/2025 ) (on 02/27/2025)

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